1. GDP How can the government measure all the production in the US?

2. What is GDP? Gross Domestic Product (a country’s income) Total market value of all final goods & services produced annually in a country Final Good = any good ready to be consumed (cheeseburger, car) Counting the engine, tires, oil, rubber, etc would count all those products twice…so just count FINAL

3. Measuring GDP Consumption Expenditures made by households Investments Expenditures made by businesses Government purchases Expenditures made by government Foreign Expenditures Exports (we make money) Imports (we spend money)

4. GDP Expenditures Chart Sector of EconomyName of ExpenditureExample HouseholdConsumptionTV, telephone, clothes, lamps BusinessInvestmentTools, machines, factories GovernmentGovernment purchasesPaper, tanks, planes ForeignExportWe sell England cars, wheat and computers ForeignImportWe buy Japanese electronics and cars

5. Per Capita GDP GDP/Population Higher the population, lower the per capita (if GDP is relatively low)